Promoting foreign direct investment in developing countries |
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| Authors: | Farok J. Contractor |
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| Affiliation: | Professor of International Business at the Graduate School of Management, , Rutgers University , |
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| Abstract: | Over 100 developing nations have investment promotion offices or agencies, reflecting a sense of competition to attract foreign direct investment, most of which flows to a few favorite countries. The investment promotion function is often underfunded and haphazard. This article outlines policy choices for investment promotion and discusses alternative modes of organizing this crucial activity. It proposes a novel bounty / royalty scheme whereby investment can be attracted. |
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